TD Ameritrade 2018 Annual Report

TD AMERITRADE HOLDING CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 70 9. Exit Liabilities As of September 18, 2017, the date of Acquisition, the Company began to incur costs in connection with actions taken to attain synergies from combining the operations of the Company and Scottrade. These costs, collectively referred to as "acquisition-related exit costs," include severance and other costs associated with consolidating facilities and administrative functions. As of September 30, 2018, substantially all of the acquisition-related exit costs associated with the Acquisition have been incurred. The following table summarizes activity in the Company's exit liabilities for the fiscal years ended September 30, 2018 and 2017, which are included in accounts payable and other liabilities on the Consolidated Balance Sheets (dollars in millions): Severance Pay and Other Employment Benefits Contract Termination and Other Costs Total Balance, September 30, 2016 . . . . . . . . . . . . . . . . . . . . . . . $ 4 $ — $ 4 Exit liabilities assumed in business acquisition . . . . . . . . 100 — 100 Costs incurred and charged to expense . . . . . . . . . . . . . . 43 (1) 1 (2) 44 Costs paid or otherwise settled . . . . . . . . . . . . . . . . . . . . (9) (1) (10) Balance, September 30, 2017 . . . . . . . . . . . . . . . . . . . . . . . 138 — 138 Exit liabilities assumed - post closing adjustments . . . . . — 9 9 Costs incurred and charged to expense . . . . . . . . . . . . . . 235 (1) 213 (2) 448 Costs paid or otherwise settled . . . . . . . . . . . . . . . . . . . . (352) (174) (526) Balance, September 30, 2018 . . . . . . . . . . . . . . . . . . . . . . . $ 21 $ 48 $ 69 (1) Costs incurred for severance pay and other employment benefits are included in employee compensation and benefits on the Consolidated Statements of Income. (2) Costs incurred for contract termination and other costs are primarily included in other operating expense and professional services on the Consolidated Statements of Income. There were no material exit costs incurred which were not associated with the Scottrade acquisition during fiscal years 2018, 2017 and 2016. The following table summarizes the cumulative amount of acquisition related exit costs incurred by the Company related to the Scottrade acquisition as of September 30, 2018 (dollars in millions): Severance Pay and Other Employment Benefits Contract Termination and Other Costs Total Exit liabilities assumed in business acquisition . . . . . . . . . . . . . . . $ 100 $ 9 $ 109 Employee compensation and benefits . . . . . . . . . . . . . . . . . . . . . . 267 — 267 Clearing and execution costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1 1 Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1 1 Occupancy and equipment costs. . . . . . . . . . . . . . . . . . . . . . . . . . . — 7 7 Professional services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 30 30 Other operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 173 173 Other non-operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2 2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 367 $ 223 $ 590